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Innovative Clean Energy Loan Guarantee Program


Innovative Clean Energy Loan Guarantee Program
Type Program
Sponsor Organization Loan Programs Office
Creation Legislation Energy Policy Act of 2005
Website Website
Purpose To support innovative energy projects that reduce, avoid, or sequester greenhouse gas emissions by providing loan guarantees, thus bridging financing gaps for technologies not yet commercialized at scale. It aims to accelerate the deployment of clean energy technologies.[1]
Program Start 2005
Initial Funding
Duration Indefinite
Historic Yes


Innovative Clean Energy Loan Guarantee Program (Title 17) is established to support innovative energy projects that reduce, avoid, or sequester greenhouse gas emissions through loan guarantees. It fills financing gaps for technologies not yet commercialized at scale, aiming to accelerate the deployment of clean energy technologies and catalyze private investment.[2]

Official Site

Goals

  • Support projects that employ new or significantly improved technology for clean energy.[3]
  • Facilitate the commercial deployment of innovative clean energy technologies.
  • Reduce greenhouse gas emissions by expanding clean energy capacity.

Organization

The program is managed by the Loan Programs Office (LPO) within the U.S. Department of Energy. The leadership role for this program is held by the Executive Director of LPO.

Partners

  • No specific partnerships are listed as the program directly engages with project developers.

History

The Innovative Clean Energy Loan Guarantee Program was authorized by the **Energy Policy Act of 2005** to help finance projects that would not otherwise secure commercial lending due to perceived risks or lack of market history. Over time, the program has adapted to include broader categories of projects and has been instrumental in several high-profile clean energy deployments. Key historical moments include the successful financing of the Ivanpah Solar Electric Generating System and the expansion of eligibility categories through legislative updates like the Bipartisan Infrastructure Law and the Inflation Reduction Act, which have provided additional loan authority and expanded the program's scope.

Funding

The program operates without a specific initial funding amount, as it provides loan guarantees rather than direct funding. Instead, it has been allocated various amounts of loan guarantee authority over the years, with billions in authority available for different project types under Title 17. The program's funding mechanism involves no upfront cost to the government, only potential liability if projects default, with the guarantee backed by the U.S. Treasury.

Implementation

Implementation involves:

  • Application and review process for projects seeking loan guarantees.
  • Due diligence on technology readiness, project viability, and environmental benefits.
  • Structuring of financial guarantees that can cover up to 80% of eligible project costs.

The program has no fixed end date, designed to continue supporting innovative energy projects indefinitely.

Related

External links

Social media

  • No specific social media accounts for this program; follow the Department of Energy for updates.

References

  1. ↑ "Innovative Clean Energy Loan Guarantees". https://www.energy.gov/lpo/innovative-clean-energy-loan-guarantees. Retrieved January 30, 2025. 
  2. ↑ "Innovative Clean Energy Loan Guarantees". https://www.energy.gov/lpo/innovative-clean-energy-loan-guarantees. Retrieved January 30, 2025. 
  3. ↑ "Innovative Clean Energy Loan Guarantees". https://www.energy.gov/lpo/innovative-clean-energy-loan-guarantees. Retrieved January 30, 2025. 
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